Feasibility assessment and optimal dispatch of multilateral transactions in deregulated power markets with distributed generations

A large number of power transactions are possible in competitive power systems due to the open-access transmission networks and the wide deployment of distributed generations (DGs). Such power transactions render system operations complex and create security, reliability and congestion problems in transmission networks. In the perspective of future energy demands as well as in the assessment of secure and economically profitable power market models, the placement of DGs and the selection of optimal and feasible transactions are of great importance. In this paper, a market dispatch model is introduced for the optimal dispatch of multilateral transactions with minimization of generation cost and transmission cost of transactions. The loading capability factor is proposed for the identification of suitable locations for the placement of DGs. Zones and their load buses corresponding to each DG unit and each combination of two DG units are identified based on the loading capabilities of the load buses. The performance of the proposed dispatch model is validated using a modified IEEE 30-bus system. The proposed approach efficiently mitigates congestion and enhances both the economic benefits and the power transfer capability of the system.